The Reserve Bank of India issued the first installment of the Sovereign Gold Bond Scheme on November 30, 2015, which matured on November 30, 2023. Now this scheme may be put on hold.
Reserve Bank of India issued the first installment of the Sovereign Gold Bond Scheme on November 30, 2015, which matured on November 30, 2023. Now this scheme may be put on hold. Sources told Business Today TV that further installments of Sovereign Gold Bond are unlikely to be issued. Sources say that SGB is a complex and expensive instrument. Due to this, the possibility of its further installment being issued is negligible.
SGB is a scheme issued by the Reserve Bank of India (RBI) on behalf of the Government of India, which gives the option of buying gold at a lower price than the market and provides returns based on the gold market after the completion of 8 years of maturity. It also gives a fixed return of 2.5 percent.
What is Sovereign Gold Bond Scheme?
The Sovereign Gold Bond Scheme was launched in November 2015. Under this scheme, the government gives people the option to invest in gold at a price lower than the market. Also, a discount of Rs 50 per gram is available on online purchases. Also, a fixed interest of 2.5 percent is given. Under this scheme, every member of the family can buy a maximum of 4 kg of gold. The maturity of Sovereign Gold Bond is completed in 8 years.
There was double profit on the first installment
When the Sovereign Gold Bond scheme was first introduced in 2015, its issue price was fixed at Rs 2,684 per gram. At that time, the issue price was fixed on the basis of the average of one week of the issued prices of 999 purity gold. At the same time, its maturity was completed in 2023, whose redemption price was fixed at Rs 6,132 per gram. That is, investors had a profit of 128.5 percent during eight years.
Tax benefit in SGB
Apart from fixed returns, tax benefit is also given under this scheme. On the other hand, if someone has invested online in this scheme, then he used to get an additional discount of Rs 50. If someone has invested online in this scheme, then he is given a discount of Rs 50 per gram. TDS is not deducted under this.
How will the gold price be decided under SGB?
The gold price under SGB is decided equal to the price of 24 carat gold before maturity. When an installment of SGB comes, the gold price under this scheme is decided on the basis of the price of gold in the bullion market a week ago.
